The average transaction price for a U.S. new vehicle purchase was $49,740 in December, just shy of the record of $49,958 in the same month two years ago, according to the latest report from Kelley Blue Book.

KBB’s Sean Tucker noted that, in December 2022, inventory shortages forced many consumers to pay over MSRP and settle for whatever models, trims and options their dealers had on hand. Two years later, the reverse is true: Analysts say manufacturers offered average incentives approaching $4,000 in December, up 44% from January.

“So why the high average transaction price? Because Americans went luxurious with their holiday car shopping,” Tucker writes, noting that 5.6% of buyers spent more than $80,000, well above the typical 4.4%. “Sales of vehicles priced above $80,000 boomed in December, up 37% over a year ago.”

Read more at KBB